In This Article:
Key Insights
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The considerable ownership by private companies in Grange Resources indicates that they collectively have a greater say in management and business strategy
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54% of the business is held by the top 3 shareholders
To get a sense of who is truly in control of Grange Resources Limited (ASX:GRR), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual investors make up 25% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of Grange Resources.
Check out our latest analysis for Grange Resources
What Does The Institutional Ownership Tell Us About Grange Resources?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Grange Resources already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Grange Resources' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Grange Resources. Shagang International (Australia) Pty Ltd is currently the largest shareholder, with 26% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 21% and 6.6%, of the shares outstanding, respectively.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Grange Resources
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.